Problem 2.4A (Algo) An Alternate Problem on Recording the Effects of Transactions (LO2-3)

The items making up the balance sheet of Phillips Truck Rental at December 31 are listed below in tabular form.

Assets

=

Liabilities

+

Owners' Equity

Cash

+

Accounts Receivable

+

Office Equipment

+

Trucks

=

Notes Payable

+

Accounts Payable

+

Capital Stock

Balances

$9,500

$13,900

$3,800

$68,000

$20,000

$10,200

$65,000

During a short period after December 31, Phillips Truck Rental had the following transactions.

1. Bought office equipment at a cost of $3,300. Paid cash.
2. Collected $5,500 of accounts receivable.
3. Paid $2,600 of accounts payable.
4. Borrowed $20,000 from a bank. Signed a note payable for that amount.
5. Purchased two trucks for $29,000. Paid $15,000 cash and signed a note payable for the balance.
6. Sold additional stock to investors for $87,000.

Required: b. Record the effects of each of the six transactions in the preceding tabular arrangement. (Enter decreases to accounts as a negative.)

Problem 2.4A (Algo) An Alternate Problem on Recording the Effects of Transactions (LO2-3) The items making up the balance sheet of Phillips Truck Rental at December 31 are listed below in tabular form. Assets Liabilities Accounts Office Accounts Cash Receivable Equipment Trucks = Notes Payable + Payable Balances $9,500 $13,900 $3,800 $68,000 $20,000 $10,20 Owners' Equity Capital Stock $65,000 + + During a short period after December 31, Phillips Truck Rental had the following transactions. 1. Bought office equipment at a cost of $3,300. Pald cash. 2. Collected $5,500 of accounts receivable. 3. Pald $2,600 of accounts payable. 4. Borrowed $20,000 from a bank. Signed a note payable for that amount. 5. Purchased two trucks for $29,000. Pald $15,000 cash and signed a note payable for the balance. 6. Sold additional stock to Investors for $87,000. Required: b. Record the effects of each of the six transactions in the preceding tabular arrangement (Enter decreases to accounts as a negative.) Assets Liabilities Cash Trucks Accounts Receivable $ 13,900 Office Equipment S 3.800 Notes Payable S 20,000 Owners' Equity Capital Stock S 65,000 Accounts Payable S 10.200 S 9.500 $ 68,000 December 31 balances 1. Balances S 9.500 $ 13,900 S 3.800 $ 68,000 S 20,000 S 10.200 S 65,000 2. . Balances S 9.500 $ 13,900 S 3.800 $ 68,000 S 20,000 S 10.200 S 65,000 3. . Balances S 9,500 $ 13,900 S 3,800 $ 68,000 S 20,000 S 10.200 S 65,000 4. Balances S 9,500 $ 09 13,900 S 3,800 $ 68,000 S 20.000 S 10,200 S 65,000 5. Balances 6. S 9.500 $ 13,900 S 3.800 $ 68,000 $ 20,000 S 10,200 S 65,000 Balances S 9,500 $ 13,900 S 3.800 $ 68,000 S 20,000 S 10,200 S 65,000